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Hi,
A straightforward solution is to use a couple of Video chips from Analog Devices. The ADV7842 will accept RGB, YC or Composite video, deinterlace and 3D comb filter and output to a 36 bit pixel bus. It needs a SDRAM chip to buffer frames.
Then use the ADV8005 for HDMI or SD/HD video output + upscaler or a cheaper option is the ADV7513 which is HDMI output only.
You would also need a microcontroller to control the devices via I2C and a few hundred hours of patience/development time to get them working perfectly.
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